The Mexico-based crypto exchange and Ripple partner Bitso says it’s the first platform in Latin America to earn a distributed ledger license from the Gibraltar Financial Services Commission (GFSC). Custody, withdrawals, deposits and trading will be fully regulated by the GFSC, according to a press release.
Gibraltar is making a name for itself as a crypto-friendly jurisdiction with a clear regulatory framework that allows companies to act compliantly and to implement strict risk management guidelines to deliver robust security, prevent financial crimes and protect customer assets.
Bitso says the new license will ensure the company is meeting all regulatory requirements.
“This license gives Bitso a leading position as one of the most innovative financial services providers in LatAm and the world, by becoming the first exchange platform in LatAm, licensed and regulated by the GFSC…
The DLT License understands the modern need for robust and speedy interaction with regulators in this fast-moving area of business, while ensuring it continues to meet its regulatory and strategic objectives, bringing more protection and certainty for users.”
The license will cover transactions made through Ripple’s XRP-based xRapid. Bitso is one of the first exchanges to adopt the cross-border payment platform, which is designed to give banks and financial institutions a legally compliant way to move money using the digital asset XRP.
The technology allows companies to deposit fiat currency on Bitso, which then converts the fiat to XRP and sends the digital asset to a corresponding crypto exchange overseas. That exchange then quickly converts the XRP back to fiat. The process is designed to take a matter of minutes.
The US-based exchange Bittrex, Philippines-based exchange Coins.ph and Luxembourg-based exchange Bitstamp are also early adopters of xRapid.
Bitso says the license will take effect on August 1st.